My friend today shared with me one mouth-watering offer of purchasing gold ornament at the lowest rate. He heard about this offer on the radio. At the initial stage, I was excited about this offer. After interaction with the shopkeeper, I could make out that the gold ornament sold by his jewelry shop is 18 Karat that’s why they are offering gold ornament at the lowest rate. Lower karat jewelry 18 K contains more impurity hence it is lower in rate. So beware of such offers. Make sure to check these 5 signs before purchasing gold. Suitable gold karat for gold ornament is 22K.
What is the Gold Rate?
The gold rate is essentially the market price of gold per gram. It changes daily based on global market trends, demand and supply, currency fluctuations, and geopolitical events. This rate is usually quoted in rupees per gram for 24-carat gold.
You can find the current gold rates at the following places:
- Online portals: Websites like Goldprice.org, LiveMint, and India Bullion offer updated gold prices.
- Jewelry stores: Most jewelers display the current rate prominently.
- Financial newspaper: Financial sections of newspapers give information about current gold rates.
Types of Gold -Purity Levels
Gold ornaments are rarely made of pure 24-carat gold due to its softness. Instead, they are crafted from gold mixed with other metals, creating different purity levels:
- 24-carat gold: Pure gold, rarely used for jewelry.
- 22-carat gold: 91.6% pure, common for ornaments.
- 18-carat gold: 75% pure, often used for more intricate designs.
- 14-carat gold: 58.3% pure, less common but durable.
How to calculate the Gold Ornament Price?
Calculate the gold ornament price with the simple formula given below.
Gold jwelry price = (Gold price per gm)* (Weight in gm) + (Making charges)*(Weight in gm) + GST
Let’s try to understand from one example:-
- If 22 K Gold rate per gram is 2530 Rs/-
- Purchase weight – 2 gm
- Making charges – 200 Rs/- per gm
Price of Gold ornaments =2530* 2+200*2 =5660 +GST (3%) = 5828 Rs/-
One important point you need to remember gold price which you see online is 24 K pure gold and for gold ornaments 22 K gold is used.
Why Gold ornaments price is different at different shops?
Although the same formula is applicable for calculating gold prices, still you find differences in gold prices from shop to shop. You might be wondering why gold ornament prices are different in different shops. I am herewith answer.
- Gold Rate: – Gold ornament price variation is mainly due to differences in gold rate. Many shopkeepers purchase gold in bulk when the price is low. They might be selling gold at a lower rate compared to the market to clear the stock. A reduction in gold price like this makes gold jewelry cheaper in that shop.
- Making Charges: – Another reason for the price difference in gold ornaments is a change in making charges. Making charges vary between 150 Rs/- per gm to 300 Rs/- per gm.
- Discount:- Sometimes to clear stock gold shopkeeper makes various offers like a reduction in making charges or a flat discount this could be another reason for gold price variation.
In India, the huge demand for gold ornaments made the gold market unorganized and unregulated. The common man always wonders where to purchase gold from a Branded jewelry shop like TBZ, Tanishq, or a family jeweler shop.
